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Hulu Cracks Down on Subscription Sharing, New Restrictions in Place

BusinessHulu Cracks Down on Subscription Sharing, New Restrictions in Place
In an effort to crack down on subscription sharing, Hulu has announced new restrictions that will impact its users. This move comes in response to similar actions taken by competitors such as Netflix and Disney+. Beginning March 14, Hulu users will only be permitted to share their account logins with members of their own household.

New Sharing Limitations

According to an email sent to subscribers, Hulu will be implementing limitations on sharing account logins outside of the user’s household. The company has emphasized that it will be closely monitoring compliance with these new restrictions and will take action against users who violate the rules, including the termination of their accounts.

Impact on Revenue and Subscriber Base

This decision is part of a broader strategy by Hulu to bolster its subscriber base and increase its revenue. Recent financial filings from Hulu’s parent company, Disney, reveal a 2% decrease in the platform’s average monthly on-demand-only subscriber revenue. Additionally, the service experienced a loss of approximately 100,000 subscribers, bringing its total user base down to 43.9 million.

Widespread Practice of Password Sharing

Password sharing is a widespread practice among consumers, with a survey indicating that 69% of Americans have used another person’s streaming service account at some point. Within the U.S., 51% of Hulu subscribers admit to sharing their login credentials with others. This places Hulu as the second most-shared streaming service, behind Netflix, which boasts 85% of U.S. account holders engaging in password sharing.

The Larger Picture: A Push for Revenue Growth

Hulu’s decision to curb subscription sharing aligns with its broader efforts to fortify its financial position and attract new subscribers. By addressing the issue of password sharing head-on, the platform aims to increase its revenue and bolster its user base.
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As Hulu moves to enforce new restrictions on subscription sharing, it is clear that the streaming service is prioritizing revenue growth and subscriber retention. By implementing these measures, Hulu aims to solidify its position in the competitive streaming landscape and drive its financial performance to new heights.
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